Card Fees Pushing Rural Petrol Stations in UK 'to the Wall'

Rural petrol stations face being driven out of business by a steep increase in the cost of processing credit card payments, the industry warned last night. The Petrol Retailers Association said that a rise in the number of 'Premium' credit cards on the market was piling pressure on smaller garages who are already struggling to cope with competition from supermarkets.

Premium credit cards - those carrying an annual charge but offering benefits and reward points - charge petrol retailers more than 2 per cent of the total amount spent by a motorist in processing fees.

For a tank of diesel this can cost the forecourt nearly £3 a tank. PRA chief Brian Madderson said petrol retailers were lucky to make as much as £3 in profit from each tank they sell. He said ministers needed to intervene, and cap the amount "greedy" banks and card issuers can charge. Madderson added: "More than 60 per cent of the price motorists pay is tax, but the credit card fee covers the whole amount. Why should card providers benefit from that? We should have a system similar to Germany where they have capped the total a card provider can pocket."

He added: "These penal charges for card payments will cause serious issues for both independent retailers and their customers."

There are just 2,000 rural petrol stations left in the UK, down from 6,000 at the peak. There are also fewer petrol forecourts dotted around the country than at any point since the Titanic as more motorists flock to supermarkets to fill up.

The PRA urged the Treasury to investigate card payments last month, condemning a lack of regulation on the sector. Mr Madderson said the Office of Fair Trading had also been asked to investigate the charges.

The OFT has already investigated, and cleared, supermarkets and oil giants of any wrongdoing on petrol pricing, insisting in January that the market was "working well".